The EU-Israel Association Agreement forms the legal basis governing relations between Israel and the European Union. It incorporates free-trade arrangements for industrial goods and concessionary arrangements for trade in agricultural produce. Under this agreement the European Union is Israel’s major trading partner, with total trade amounting to €20.2 billion in 2009. The EU is Israel’s major source of imports and is the second largest market for exports behind the US (covering 29.3% and 32.9% of the export market respectively). EU investment in Israel amounted to €3.5 billion in 2007 while Israeli investment in the EU was €6.3 billion.
Article 2 of the Association Agreement states: "Relations between the Parties, as well as all the provisions of the Agreement itself, shall be based on respect for human rights and democratic principles, which guides the internal and international policy and constitutes an essential element of the Agreement". There have been weighty legal opinions and votes carried in the European Parliament to say that the Agreement should be suspended because Israel is so abusive of international human rights conventions and is in constant breach of international law.
The International Court of Justice, which is the highest authority in the international system, gave an advisory opinion in 2004 which said that the route of the Separation Wall and the existence of the settlements were in complete breach of international law. The EU did nothing. Similarly, various reports on Operation Cast Lead, the siege of Gaza and other grave breaches of international law led to no action by the EU.Thus, the EU is Israel’s major economic partner, under a treaty that requires respect for human rights and democratic principles in relation to internal and international policy, Israel is in gross breach of these principles and no action is taken. Instead the EU proposes to upgrade the Agreement, but the proposal is on hold following a vote in the European Parliament to postpone the issue.
[also see>ei: Book Review: Europe's Alliance with Israel by David Cronin' http://electronicintifada.net/content/book-review-europes-alliance-israel/3607
How we are financing Israel’s security http://sargasso.nl/archief/2010/09/08/how-we-are-financing-israels-defense/
The EU is providing yet more R&D subsidies for the Israeli security-industrial complex http://neoconopticon.wordpress.com/2010/09/08/total-airport-security-part-3-israels-verint-systems-leads-e9-million-ec-funded-consortium/
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